The perceived central economic problem associated with the U.S. health care system is:
A. too many frivolous malpractice lawsuits.
B. an overabundance of scanning machines.
C. an overallocation of resources to the system.
D. that workers lose their insurance when they lose their jobs.
Answer: C
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The Coase Theorem is the proposition that private transactions are efficient if property rights exist, if only a ________ number of parties are involved, and if transactions costs are ________
A) large; low B) large; high C) small; low D) small; high
The ________ interest rate more accurately reflects the true cost of borrowing
A) nominal B) real C) discount D) market
To convert nominal economic data from several different years into real, inflation-adjusted data, the starting point is to choose a ____________ year.
a. base b. future c. past d. compliant
When the economy is in recession, personal income tax collections
a. fall along with consumption and real GDP b. fall but consumption and real GDP rise c. rise providing funds for rising unemployment insurance d. rise but unemployment insurance payments fall so incomes remain unchanged e. fall but saving and investment rise along with real GDP